Why 8th NASS rejected Buhari’s $30 billion loan request – Shehu Sani

Former chairman, Senate committee on local and foreign debt in the senate, Senator Shehu Sani has explained why the request by Nigeria President Muhammadu Buhari to borrow $30 billion was turned down by the 8th Senate.

“We turned down the FG loan request for 30 Billion to save Nigeria from sinking into the dark gully of a perpetual debt trap. We don’t want our country to be recolonized by creditor banks,” Sani said in a statement.

“Our external debt in 2015 was $10.32 Billion and it escalated to $22.08 in the second quarter this year, which is 114 per cent, if we had approved that loan request, our external debt could have catapulted to over $52 Billion and that is not sustainable.”

He cautioned that With the current escalation of borrowing, “Nigeria will walking into debt Slavery and move from landlords to tenants in our country.

“They will always tell you that even America is borrowing and I don’t know how rational is it to keep on borrowing because Another country is borrowing.

“If we keep listening to Bankers and contractors we will keep borrowing and burying ourselves and leave behind for our children a legacy of debt burden.

“Loans are not charities. Most of those encouraging more borrowing are parasitic consultants, Commission agents, rent-seeking fronts and contractors.”

President Muhammadu Buhari on Thursday requested the Senate to reconsider approving the federal government’s 2016 to 2018 external borrowing plan rejected by the 8th Senate under Bukola Saraki‘s leadership.